UK's Currys to raise minimum pay rate by 9.5%

FILE PHOTO: A person carries a television outside a Currys store in London, Britain, November 22, 2021. Picture taken November 22, 2021. REUTERS/May James/File Photo

LONDON (Reuters) -British electricals retailer Currys said on Monday it would increase its minimum pay rate by 9.5%, in a move that reflects the rise in the government-mandated minimum wage.

Currys, which is at the centre of a potential takeover battle, said its minimum pay rate will rise from April 1 to 11.50 pounds ($14.57) an hour, or 12.50 pounds an hour in London – ahead of the government’s national living wage, which will increase by 9.8% to 11.44 pounds an hour.

It said a blend of higher base pay and bonus means skilled, stores-based staff will be able to earn on average 12.33 pounds per hour, with top performers on 13.95 pounds an hour on average.

The Bank of England is keeping a close eye on wage settlements as it assesses the direction of interest rates. It fears rapid wage growth could add more inflationary pressure across the economy.

Worker wages in Britain have only recently begun outpacing inflation, which held steady at 4% in January, but still double the central bank’s target of 2%.

Other retailers, including Sainsbury’s, Asda, Marks & Spencer, Amazon, Aldi, Lidl and Costa Coffee have also announced pay rises for 2024.

($1 = 0.7894 pounds)

(Reporting by James Davey; Editing by Sachin Ravikumar)